OPEC oil output hits 2018 high

OPEC oil output hits 2018 high

Eurotankers, which had a deal with MRPL to import two Iranian oil cargoes every month, has also said it can not undertake Iranian voyages from September, the sources said.

Oil prices rose on Tuesday, with U.S. crude breaking through $70 a barrel, after the evacuation of two Gulf of Mexico oil platforms in preparation for a hurricane.

USA crude oil hasn't traded at $95 a barrel in since 2014, but this is the year that could change.

The sharp increase was linked to mounting concerns that falling Iranian output could tighten markets once US sanctions bite from November.

"It has a lot to do with just lots of positive sentiment in the oil speculator market", said Rob Haworth, who helps oversee $151 billion at US Bank Wealth Management in Seattle.

Crude oil prices are now slightly higher.

United States light crude traded at $70.60 a barrel by 7.45am GMT, up 80c from its close on August 31.

Looking at the latest news, Anadarko Petroleum Corp said that it shut down two oil platforms in the northern Gulf of Mexico thanks to weather conditions.

"Currently, we are holding close and intensive talks with Europe over their promises to salvage the 2015 nuclear deal between Tehran and world powers", Araqchi has said, according to the Iranian Fars news agency, reported by Azeri outlet Trend.

His decision to re-impose sanctions on major OPEC oil producer Iran (with the restrictions due to kick in in November) could push prices even higher as Iran's contribution to global oil supply is restricted.

A second phase of sanctions targeting Iran's crucial oil industry and banking sector will be reinstated on November 5.

As oil markets show growing global supply concern, Iraq is signaling the jitters may be overdone.

The attempt to keep Iranian oil flowing mirrors a step by China, where buyers are shifting almost all their Iranian oil imports to vessels owned by National Iranian Tanker Co (NITC), reported news agency Reuters quoting sources.

In fact, Russian Federation surpassed Saudi Arabia as China's largest source of foreign crude oil in 2016, exporting 1.2 million b/d to China in 2017 compared with Saudi Arabia's 1.0 million b/d.

In comments reported by Iran's Tasnim News Agency, Araqchi said on Tuesday that the European parties to the Iranian nuclear deal have until November 4 to "fulfill their pledges" to offset the impact of the USA sanctions.

Elsewhere, analysts from BNP Paribas have lowered their forecasts for oil prices for the rest of the year in light of stable demand-supply expectations.

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